Monday, August 6, 2012

CONTEXT Diverging as all of the markets are open

CONTEXT's ES model is hard to rely on before all the risk asset markets that go in to the model are open obviously, times like last night as S&P Futures were trading, but many markets such as credit and treasuries weren't yet open. Now that they are open, the model is diverging more and more from the E-mini futures themselves.

 As you can see the ES model is turning lower from ES.

Since the 9:30 open, here's the ES chart, there's another negative divergence on the opening action, alone this wouldn't be sufficient for me to expect an immediate reversal and this is VERY early in opening trade, but as the earlier pre-N.Y. ES divergence was in place, this is just another to add. We'll see very shortly, but I'd like to see another and a stronger negative or even a trend of them or a leading negative divergence in ES.

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